RecDoc 2011-155321 - Laserfiche WebLink

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18. Suoerioritv of Resale Restriction Aareement. Owner covenants that Owner has not, and will not, execute any other agreement with provisions contradictory to or in opposition to the provisions of this Resale Restriction Agreement, and that, in any event, this Resale Restriction Agreement is controlling as to the rights and obligations between and among Owner, the City and their respective successors and assigns. 19. Riahts of Mortqaqees; Mortqaqe Lender Acpuisition. This Section 19 exists to accommodate and balance the City's interest in maintaining a supply of affordable housing units and the interest of property mortgage lenders ("Lender(s)") in selling Subject Affordable Unit if acquired through foreclosure action or deed in lieu of foreclosure (collectively, "Foreclosure"). Mortgagees shall notify the City within twenty (20) days of filing a Notice of Default against the Subject Affordable Unit. Before acquisition of the Subject Affordable Unit through Foreclosure, the City shall have the option, but not the obligation, to cure such default. Upon acquisition of the Subject Affordable Unit by a Lender through Foreclosure, the Lender shall, at least sixty (60) days prior to selling, conveying, transferring or otherwise disposing of the Subject Affordable Unit, offer to sell the Subject Affordable Unit to the City for a purchase price equal to the original purchase price of the Subject Affordable Unit paid by the defaulting Owner. In the event the City elects to purchase the Subject Affordable Unit, the City and Lender shall open escrow with a mutually agreeable escrow company and shall share equally in escrow related expenses except that City shall not pay any expenses customarily paid by sellers in San Mateo County, California. Such escrow period shall be no less than thirty (30) days. At any time between receipt of offer to purchase the Subject Affordable Unit and the close of escrow as described herein, even after the City notifies Lender that it exercises its option, the City may assign its right to purchase the Subject Affordable Unit to a person or entity of its choosing. The City may re-assign its right to purchase to succeeding persons or entities of its choosing in the event that the initial assignee withdraws or is disqualified from the purchase, provided that the close of escrow is within the original ninety (90) days or such additional period as is agreed to by Lender. If the City or an assignee of the City fails to complete the purchase for any reason, the City may withdraw from the purchase without penalty or liability and Lender may sell the Subject Affordable Unit as if the City had failed to exercise its option. In the event the City declines to purchase the Subject Affordable Unit within sixty (60) days of receipt of a written offer to sell the Subject Affordable Unit to the City, or the City elects not to purchase the Subject Affordable Unit after ninety (90) days (in the event escrow is opened as provided herein), the Lender shall be permitted to sell the Subject Affordable Unit, free of this Resale Restriction Agreement, to any third party willing to purchase the Subject Affordable Unit. In such event, in recognition of the City's loss of the Subject Affordable Unit as an affordable housing unit, any sales proceeds received by a Lender in excess of those amounts due the Lender (including reasonable foreclosure expenses and closing costs), shall be remitted to the City concurrently with